Maiden Holdings, Ltd. Announces Third Quarter 2016 Net Income Attributable To Common Shareholders Of $31.8 Million Or $0.40 Per Diluted Common Share And Operating Earnings(1) Of $30.2 Million Or $0.39 Per Diluted Common Share

Highlights for the quarter ended September 30, 2016
  • Net income attributable to Maiden common shareholders of $31.8 million, or $0.40 per diluted common share compared with net income attributable to Maiden common shareholders of $22.5 million, or $0.30 per diluted common share in the third quarter of 2015;
  • Annualized return on common equity of 11.6% compared to 9.8% in the third quarter of 2015;
  • Net operating earnings (1) of $30.2 million, or $0.39 per diluted common share compared with net operating earnings of $25.8 million, or $0.34 per diluted common share in the third quarter of 2015;
  • Annualized operating return on common equity (7) of 11.0% compared to 11.3% in the third quarter of 2015;
  • Gross premiums written increased 12.5% to $706.9 million compared to the third quarter of 2015;
  • Net premiums written increased 15.3% to $690.7 million compared to the third quarter of 2015;    
  • Combined ratio (12) of 98.5% compared to 99.6% in the third quarter of 2015;
  • Net investment income was $35.7 million compared to $32.8 million in the third quarter of 2015;
  • Book value per common share (4) of $14.40 at September 30, 2016 increased 1.6% versus at June 31, 2016; and
  • In September, Maiden's mandatory convertible preference shares converted into common shares, increasing common shares outstanding by 12,069,090.

Highlights for the nine months ended September 30, 2016
  • Net income attributable to Maiden common shareholders of $90.0 million or $1.15 per diluted common share compared with $75.4 million, or $0.99 per diluted common share in the first nine months of 2015;
  • Annualized return on common equity of 12.2% compared to 11.0% in the first three quarters of 2015;
  • Net operating earnings (1) of $87.0 million, or $1.11 per diluted common share compared with net operating earnings of $80.8 million, or $1.05 per diluted common share in the first nine months of 2015;
  • Annualized operating return on common equity (1) of 11.8% compared to 11.8% in the first three quarters of 2015;
  • Gross premiums written were $2.3 billion, an increase of 5.7% compared to the first nine months of 2015;
  • Net premiums written increased 5.3% to $2.1 billion in the first three quarters of 2016 compared to the same period last year;
  • Combined ratio (12) of 98.7% was lower than the 99.1% in the first nine months of 2015; and
  • Net investment income was $107.3 million, an increase of 11.5% compared to the first three quarters of 2015.

HAMILTON, Bermuda, Nov. 02, 2016 (GLOBE NEWSWIRE) -- Maiden Holdings, Ltd. (NASDAQ:MHLD) ("Maiden" or "the Company") today reported third quarter 2016 net income attributable to Maiden common shareholders of $31.8 million or $0.40 per diluted common share compared to net income attributable to Maiden common shareholders of $22.5 million or $0.30 per diluted common share in the third quarter of 2015. Net operating earnings (1) were $30.2 million, or $0.39 per diluted common share compared with net operating earnings of $25.8 million, or $0.34 per diluted common share in the third quarter of 2015.

Commenting on the Company's results, Art Raschbaum, Chief Executive Officer of Maiden, said: "Maiden continued to deliver strong results with a year-over-year improvement in our combined ratio, double digit operating return on common equity, increased investment income, continued growth in book value and disciplined growth from virtually all business activities, despite an increasingly challenging operating environment with intensifying competition, as well as growing loss cost volatility.  Maiden's growth during the quarter emanated from existing client relationships and new business.  Our recent rating upgrade from AM Best to A stable, will further strengthen Maiden's unique value proposition to our clients and prospects."

Results for the quarter ended September 30, 201 6 Maiden reported third quarter 2016 net income attributable to common shareholders of $31.8 million or $0.40 per diluted common share compared with $22.5 million or $0.30 per diluted common share in the third quarter of 2015. Net operating earnings (1) were $30.2 million, or $0.39 per diluted common share in the third quarter of 2016 compared with $25.8 million, or $0.34 per diluted common share in the third quarter of 2015.

In the third quarter of 2016, gross premiums written increased 12.5% to $706.9 million from $628.5 million in the third quarter of 2015.  The Diversified Reinsurance segment's gross premiums written totaled $186.8 million, an increase of 7.1% versus the third quarter of 2015, with growth from existing customers and new accounts developed over the course of the year. In the AmTrust Reinsurance segment, gross premiums written were $520.1 million, an increase of 14.5% compared to $454.2 million in the third quarter of 2015. 

Net premiums written totaled $690.7 million in the third quarter of 2016, an increase of 15.3% compared to the third quarter of 2015. 

Net premiums earned of $698.3 million increased 6.0% compared to the third quarter of 2015. In the Diversified Reinsurance segment, net premiums earned decreased 9.4% to $175.1 million compared to the third quarter of 2015. The AmTrust Reinsurance segment net premiums earned were $523.1 million, up 12.4% compared to the third quarter of 2015. 

Net loss and loss adjustment expenses of $466.8 million were up 5.1% compared to the third quarter of 2015.  

The loss ratio (8) of 66.6% was lower than the 67.2% reported in the third quarter of 2015.

Commission and other acquisition expenses, increased 4.6% to $206.7 million in the third quarter of 2016, compared to the same quarter a year ago.  The expense ratio (11) decreased to 31.9% for the third quarter of 2016 compared with 32.4% in the same quarter last year, due to changes in the mix of quota share and excess of loss business.  General and administrative expenses for the third quarter of 2016 totaled $17.0 million, a 3.0% increase compared with $16.5 million in the third quarter of 2015. The general and administrative expense ratio (10) was 2.4% in the third quarter of 2016, compared to 2.5% in the third quarter of 2015. 

The combined ratio (12) for the third quarter of 2016 totaled 98.5% compared with 99.6% in the third quarter of 2015.   The Diversified Reinsurance segment combined ratio was 102.2% in the third quarter of 2016, an improvement from 103.6% in the third quarter of 2015, as net adverse development from commercial auto business continued to impact results.  The AmTrust Reinsurance segment combined ratio was 95.9% in the third quarter of 2016 compared to 95.4% in the third quarter of 2015.  

Net investment income of $35.7 million in the third quarter of 2016 increased 8.6% compared to the third quarter of 2015.  As of September 30, 2016, the average yield on the fixed income portfolio (excluding cash) is 3.20% with an average duration of 4.49 years. Cash and cash equivalents were $434.0 million at September 30, 2016 or $101.5 million higher than at year-end 2015.

Total assets increased 13.4% to $6.5 billion at September 30, 2016 compared to $5.7 billion at year-end 2015.  Shareholders' equity was $1.6 billion, up 15.4% compared to December 31, 2015.  Book value per common share was $14.40 at September 30, 2016 or 22.3% higher than at December 31, 2015.  During the third quarter of 2016, the Board of Directors declared dividends of $0.14 per common share, $0.515625 per Series A preference share, $0.90625 per Series B preference share and $0.445313 per Series C preference share.

Results for the nine months ended September 30, 2016 Net income attributable to Maiden common shareholders was $90.0 million or $1.15 per diluted common share in the first nine months of 2016 compared to net income attributable to Maiden common shareholders of $75.4 million or $0.99 per diluted common share in the first three quarters of 2015.  Net operating earnings (1) for the first nine months of 2016 were $87.0 million, or $1.11 per diluted common share compared with $80.8 million, or $1.05 per diluted common share in the first three quarters of 2015. 

In the first nine months of 2016, gross premiums written totaled $2.3 billion, an increase of 5.7% compared to the first nine months of 2015.  Gross premiums written in the Diversified Reinsurance segment totaled $667.4 million, an increase of 5.7% versus the first three quarters of 2015.  In the AmTrust Reinsurance segment, gross premiums written increased by 5.7% to $1.6 billion compared to the first three quarters of 2015. 

In the first three quarters of 2016, net premiums written totaled $2.1 billion, an increase of 5.3% compared to the first nine months of 2015.

Net premiums earned of $2.0 billion increased 5.8% compared to the first nine months of 2015.  Net premiums earned decreased 5.7% in the Diversified Reinsurance segment to $538.2 million compared to the first three quarters of 2015. The AmTrust Reinsurance segment net premiums earned were up 10.9% to $1.4 billion compared to the first three quarters 2015.

Net loss and loss adjustment expenses of $1.3 billion were up 4.9% compared to the first nine months of 2015. The loss ratio (8) of 66.2% was lower than the 66.7% in the first three quarters of 2015.

Commission and other acquisition expenses, increased $35.8 million to $587.5 million in the first nine months of 2016 versus the comparable period a year ago, while the expense ratio (11) rose to 32.5% for the first nine months of 2016 compared with 32.4% in the same period last year.  General and administrative expenses for the first three quarters of 2016 totaled $49.7 million compared with $49.0 million in the first nine months of 2015. The general and administrative expense ratio (10) decreased to 2.5% in the first three quarters of 2016 versus 2.7% in the same period during 2015.

The combined ratio (12) for the first three quarters of 2016 was 98.7% and lower than the 99.1% combined ratio reported for the first nine months of 2015. The Diversified Reinsurance segment had a combined ratio of 102.8% in the first three quarters of 2016, which is the same as the first nine months of 2015. The AmTrust Reinsurance segment combined ratio was 95.4% in the first three quarters of 2016 compared to 95.1% in the comparable period in 2015.

Net investment income of $107.3 million in the first three quarters of 2016 increased 11.5% compared to the first three quarters of 2015. 

(1)(4)(7) Please see the Non-GAAP Financial Measures table for additional information on these non-GAAP financial measures and reconciliation of these measures to GAAP measures.

(8)(10)(11)(12) Loss ratio, general and administrative expense ratio, expense ratio and combined ratio are operating metrics. Please see the additional information on these measures under Segment information tables.

Conference CallMaiden's Chief Executive Officer, Art Raschbaum and Chief Financial Officer, Karen Schmitt will review these results tomorrow via teleconference and live audio webcast beginning at 12:00 p.m. ET.

To participate in the conference call, please access one of the following at least five minutes prior to the start time: 

U.S. Callers: 1.877.734.5373

Outside U.S. Callers: 1.973.200.3059

Passcode: 5957381

Webcast: http://www.maiden.bm/news_events

A replay of the conference call will be available beginning at 3:00 p.m. ET on November 3, 2016 through 2:00 p.m. ET on November 10, 2016. To listen to the replay, please dial toll free: 1.855.859.2056 (U.S. Callers) or toll: 1.404.537.3406 (callers outside the U.S.) and enter the Passcode: 5957381; or access http://www.maiden.bm/news_events.

About Maiden Holdings, Ltd.Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.  Through its subsidiaries, which are each A rated (excellent) by A.M. Best, the Company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe. As of September 30, 2016, Maiden had $6.5 billion in assets and shareholders' equity of $1.6 billion.

The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006

Forward Looking StatementsThis release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions and unusual frequency of storm activity, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected is contained in Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 as updated in periodic filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements, except as may be required by law.

 
Maiden Holdings, Ltd.
Balance Sheet  
(in thousands (000's), except per share data)
 
       
    September 30, 2016 (Unaudited)     December 31, 2015 (Audited)
Assets          
Fixed maturities, available-for-sale, at fair value (Amortized cost 2016: $3,660,873; 2015: $3,562,864)   $     3,748,342     $     3,508,088  
Fixed maturities, held-to-maturity, at amortized cost (Fair value 2016: $798,081; 2015: $598,975)       759,973           607,843  
Other investments, at fair value (Cost 2016: $10,860; 2015: $10,816)       12,268           11,812  
Total investments       4,520,583           4,127,743  
Cash and cash equivalents       67,459           89,641  
Restricted cash and cash equivalents       366,563           242,859  
Accrued investment income       33,884           32,288  
Reinsurance balances receivable, net       535,015           377,318  
Reinsurance recoverable on unpaid losses       97,070           71,248  
Loan to related party       167,975           167,975  
Deferred commission and other acquisition expenses, net       451,698           397,548  
Goodwill and intangible assets, net       80,135           81,920  
Other assets       147,580           115,038  
Total Assets $     6,467,962     $     5,703,578  
Liabilities and   Equity          
Liabilities          
Reserve for loss and loss adjustment expenses $     2,759,518     $     2,510,101  
Unearned premiums       1,571,435           1,354,572  
Accrued expenses and other liabilities       150,741           135,897  
Liability for securities purchased       78,581           3,976  
Senior notes          
Principal amount       362,500           360,000  
Less unamortized debt issuance costs       11,172           10,067  
Senior notes, net       351,328           349,933  
Total Liabilities       4,911,603           4,354,479  
           
Equity          
Preference Shares       315,000           480,000  
Common shares       872           747  
Additional paid-in capital       747,203           579,178  
Accumulated other comprehensive income (loss)       123,876           (23,767 )
Retained earnings       373,340           316,184  
Treasury shares, at cost       (4,991 )         (4,521 )
Total Maiden Shareholders' Equity       1,555,300           1,347,821  
Noncontrolling interest in subsidiaries       1,059           1,278  
Total Equity       1,556,359           1,349,099  
Total Liabilities and Equity $     6,467,962     $     5,703,578  
           
           
Book value per common share (4) $     14.40     $     11.77  
           
Common shares outstanding     86,128,999         73,721,140  
           

 
Maiden Holdings, Ltd.  
Income Statement  
(in thousands (000's), except per share data)  
(Unaudited)  
                         
                         
  For the Three Months Ended September 30, 2016   For the Three Months Ended September 30, 2015   For the Nine Months Ended September 30, 2016   For the Nine Months Ended September 30, 2015  
 
Revenues:                        
Gross premiums written $     706,854     $     628,501     $     2,259,290     $     2,136,935    
                         
Net premiums written $     690,653     $     599,153     $     2,133,911     $     2,025,754    
Change in unearned premiums     7,625         59,367         (182,060 )       (180,495 )  
Net premiums earned     698,278         658,520         1,951,851         1,845,259    
Other insurance revenue     2,345         2,177         8,696         9,408    
Net investment income     35,666         32,843         107,291         96,260    
Net realized gains on investment     1,900         1,216         4,511         2,327    
Total other-than-temporary impairment losses     -         (1,060 )       -         (1,060 )  
Portion of loss recognized in other comprehensive income (loss)     -         -         -         -    
Net impairment losses recognized in earnings     -         (1,060 )       -         (1,060 )  
Total revenues     738,189         693,696         2,072,349         1,952,194    
Expenses:                        
Net loss and loss adjustment expenses     466,751         444,172         1,297,361         1,236,505    
Commission and other acquisition expenses     206,706         197,639         587,501         551,678    
General and administrative expenses     16,952         16,453         49,738         48,951    
Total expenses     690,409         658,264         1,934,600         1,837,134    
                         
Income from operations (2)       47,780           35,432           137,749           115,060    
                         
Other expenses                        
Interest and amortization expenses     (6,856 )       (7,266 )       (21,314 )       (21,796 )  
Accelerated amortization of senior note issuance cost     -         -         (2,345 )       -    
Amortization of intangible assets     (616 )       (710 )       (1,846 )       (2,130 )  
Foreign exchange and other gains     687         1,427         6,474         4,062    
Total other expenses     (6,785 )       (6,549 )       (19,031 )       (19,864 )  
                         
Income before income taxes       40,995           28,883           118,718           95,196    
Income tax expense     199         368         1,206         1,636    
                         
Net income       40,796           28,515           117,512           93,560    
Add: loss attributable to noncontrolling interest     56         69         166         116    
Net income attributable to Maiden         40,852           28,584           117,678           93,676    
Dividends on preference shares (6)     (9,023 )       (6,085 )       (27,723 )       (18,253 )  
Net income attributable to Maiden common shareholders $     31,829     $     22,499     $     89,955     $     75,423    
Net operating earnings attributable to Maiden common shareholders (1) $     30,196     $     25,758     $     86,974     $     80,791    
                         
Basic earnings per common share attributable to Maiden shareholders $     0.42         0.31     $     1.20         1.03    
Diluted earnings   per common share attributable to Maiden shareholders $     0.40         0.30     $     1.15         0.99    
Basic operating earnings per common share attributable to Maiden shareholders $     0.40         0.35     $     1.16         1.10    
Diluted operating earnings per common share attributable to Maiden shareholders $     0.39         0.34     $     1.11         1.05    
                         
Dividends declared per common share $     0.14     $     0.13     $     0.42     $     0.39    
                         
Weighted average number of common shares - basic     75,993,451         73,638,980         74,625,839         73,403,998    
Adjusted weighted average number of common shares and assumed conversions - diluted     86,150,951         85,743,005         86,018,019         85,486,002    
                         
Net loss and loss adjustment expense ratio (8)     66.6 %       67.2 %       66.2 %       66.7 %  
Commission and other acquisition expense ratio (9)     29.5 %       29.9 %       30.0 %       29.7 %  
General   and administrative expense ratio (10)     2.4 %       2.5 %       2.5 %       2.7 %  
Expense ratio (11)     31.9 %       32.4 %       32.5 %       32.4 %  
Combined ratio (12)     98.5 %       99.6 %       98.7 %       99.1 %  
Annualized return on average common equity     11.6 %       9.8 %       12.2 %       11.0 %  
Annualized operating return on average common equity (7)     11.0 %       11.3 %       11.8 %       11.8 %  
                         

 
Maiden Holdings, Ltd.  
Non - GAAP Financial Measure  
(in thousands (000's), except per share data)  
(Unaudited)  
                           
                           
    For the Three Months Ended September 30, 2016   For the Three Months Ended September 30, 2015   For the Nine Months Ended September 30, 2016   For the Nine Months Ended September 30, 2015  
   
Reconciliation of net income attributable to Maiden common shareholders to net operating earnings:                          
Net income attributable to Maiden common shareholders $     31,829     $     22,499       $     89,955     $     75,423    
Add (subtract)                          
  Net realized gains on investment        (1,900 )         (1,216 )         (4,511 )         (2,327 )  
  Net impairment losses recognized in earnings       -            1,060           -            1,060    
  Foreign exchange and other gains       (687 )         (1,427 )         (6,474 )         (4,062 )  
  Amortization of intangible assets       616           710           1,846           2,130    
  Divested excess and surplus "E&S" business and NGHC run-off       47           3,841           2,942           7,696    
  Accelerated amortization of senior note issuance cost       -            -            2,345           -     
  Non-cash deferred tax expense        291           291           871           871    
Net operating earnings attributable to Maiden common shareholders (1) $     30,196     $     25,758     $     86,974     $     80,791    
                           
Operating earnings per common share attributable to Maiden shareholders:                        
                           
Basic earnings per common share attributable to Maiden shareholders $     0.40     $     0.35     $     1.16     $     1.10    
Diluted earnings per common share attributable to Maiden shareholders $     0.39     $     0.34     $     1.11     $     1.05    
                           
Reconciliation of net income attributable to Maiden to income from operations:                        
Net income attributable to Maiden  $     40,852     $     28,584     $     117,678     $     93,676    
Add (subtract)                        
  Foreign exchange and other gains       (687 )         (1,427 )         (6,474 )         (4,062 )  
  Amortization of intangible assets       616           710           1,846           2,130    
  Interest and amortization expenses       6,856           7,266           21,314           21,796    
  Accelerated amortization of senior note issuance cost       -            -            2,345           -     
  Income tax expense        199           368           1,206           1,636    
  Loss attributable to noncontrolling interest       (56 )         (69 )         (166 )         (116 )  
Income from operations (2) $     47,780     $     35,432     $     137,749     $     115,060    
                           
    September 30, 2016   December 31, 2015        
Investable assets:                  
Total investments $     4,520,583     $     4,127,743          
Cash and cash equivalents       67,459           89,641          
Restricted cash and cash equivalents       366,563           242,859          
Loan to related party       167,975           167,975          
Total investable assets (3) $     5,122,580     $     4,628,218              
                           
    September 30, 2016   December 31, 2015              
Capital:                        
Preference shares $     315,000         480,000                
Common shareholders' equity       1,240,300           867,821                
Total Maiden shareholders' equity       1,555,300           1,347,821                
2011 Senior Notes       -            107,500                
2012 Senior Notes       100,000           100,000                
2013 Senior Notes       152,500           152,500                
2016 Senior Notes       110,000           -                 
Total capital resources (5) $     1,917,800     $     1,707,821                
                           
(1) Net operating earnings is a non-GAAP financial measure defined by the Company as net income attributable to Maiden common shareholders excluding realized and unrealized investment gains and losses, net impairment losses recognized in earnings, foreign exchange and other gains and losses, amortization of intangible assets, divested excess and surplus business and NGHC run-off, accelerated amortization of senior note issuance cost and non-cash deferred tax expense and should not be considered as an alternative to net income. The Company's management believes that net operating earnings is a useful indicator of trends in the Company's underlying operations. The Company's measure of net operating earnings may not be comparable to similarly titled measures used by other companies.   
                           
(2) Income from Operations is a non-GAAP financial measure defined by the Company as net income attributable to Maiden excluding foreign exchange and other gains and losses, amortization of intangible assets, interest and amortization expenses, accelerated amortization of senior note issuance cost, income tax expense and income or loss attributable to noncontrolling interest and should not be considered as an alternative to net income.  The Company's management believes that income from operations is a useful measure of the Company's underlying earnings fundamentals based on its underwriting and investment income before financing costs. This income from operations enables readers of this information to more clearly understand the essential operating results of the Company. The Company's measure of income from operations may not be comparable to similarly titled measures used by other companies.   
                           
(3) Investable assets is the total of the Company's investments, cash and cash equivalents and loan to a related party.  
               
(4) Book value per common share is calculated using common shareholders' equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding.  
               
(5) Total capital resources is the sum of the Company's principal amount of debt and Maiden shareholders' equity.  
               
(6) Dividends on preference shares consist of $3,094 and $9,282 paid to Preference Shares - Series A and $2,991 and $8,971 paid to Preference shares - Series B during the three and nine months ended September 30, 2016 and 2015, respectively, and $2,938 and $9,470 paid to Preference shares - Series C during the three and nine months ended September 30, 2016, respectively.  
               
(7) Operating return on average common equity is a non-GAAP financial measures. Management uses operating return on average common shareholders' equity as a measure of profitability that focuses on the return to Maiden common shareholders. It is calculated using operating earnings available to common shareholders divided by average Maiden common shareholders' equity. For the three and nine months ended September 30, 2016, the average common shareholders' equity is adjusted for the period the Mandatory Convertible Preference Shares - Series B are outstanding (prior to mandatory conversion date of September 15, 2016).  

 
Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                                 
                                 
                                 
                                 
For the Three Months Ended September 30, 2016   Diversified Reinsurance     AmTrust Reinsurance     Other     Total  
Gross premiums written   $     186,750       $     520,104       $     -        $     706,854    
Net premiums written   $     179,092       $     511,561       $     -        $     690,653    
Net premiums earned   $   175,141       $   523,137       $     -        $   698,278    
Other insurance revenue       2,345             -              -            2,345    
Net loss and loss adjustment expenses       (132,396 )         (334,310 )         (45 )         (466,751 )  
Commissions and other acquisition expenses       (39,868 )         (166,836 )         (2 )         (206,706 )  
General and administrative expenses       (9,038 )         (759 )                   (9,797 )  
Underwriting income (loss)     $     (3,816 )     $     21,232       $     (47 )     $     17,369    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                                  37,566    
Interest and amortization expenses                                 (6,856 )  
Amortization of intangible assets                                 (616 )  
Foreign exchange and other gains                                 687    
Other general and administrative expenses                                 (7,155 )  
Income tax expense                                 (199 )  
Net income                           $     40,796    
                                 
Net loss and loss adjustment expense ratio (8)       74.6 %         63.9 %                 66.6 %  
Commission and other acquisition expense ratio (9)       22.5 %         31.9 %                 29.5 %  
General and administrative expense ratio (10)       5.1 %         0.1 %                 2.4 %  
Combined ratio (12)       102.2 %         95.9 %                 98.5 %  
                                 
                                 
                                 
                                 
For the Three Months Ended September 30, 2015   Diversified Reinsurance     AmTrust Reinsurance     Other     Total  
Gross premiums written   $     174,307       $     454,194       $     -        $     628,501    
Net premiums written   $     163,710       $     435,443       $     -        $     599,153    
Net premiums earned   $   193,207       $   465,313       $     -        $     658,520    
Other insurance revenue       2,177             -              -              2,177    
Net loss and loss adjustment expenses       (142,468 )         (297,780 )         (3,924 )         (444,172 )  
Commissions and other acquisition expenses       (51,714 )         (146,008 )         83           (197,639 )  
General and administrative expenses       (8,218 )         (656 )                   (8,874 )  
Underwriting income (loss)     $   (7,016 )     $   20,869       $   (3,841 )     $   10,012    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                                 34,059    
Net impairment losses recognized in earnings                                 (1,060 )  
Interest and amortization expenses                                 (7,266 )  
Amortization of intangible assets                                 (710 )  
Foreign exchange and other gains                                 1,427    
Other general and administrative expenses                                 (7,579 )  
Income tax expense                                 (368 )  
Net income                             $     28,515    
                                 
Net loss and loss adjustment expense ratio (8)       72.9 %         63.9 %                 67.2 %  
Commission and other acquisition expense ratio (9)       26.5 %         31.4 %                 29.9 %  
General and administrative expense ratio (10)       4.2 %         0.1 %                 2.5 %  
Combined ratio (12)       103.6 %         95.4 %                 99.6 %  
                                 

 
Maiden Holdings, Ltd.
Supplemental Financial Data - Segment Information
(in thousands (000's))
(Unaudited)
                                 
                                 
                                 
For the Nine Months Ended September 30, 2016   Diversified Reinsurance     AmTrust Reinsurance     Other     Total  
Gross premiums written   $   667,388       $   1,591,902               $   2,259,290    
Net premiums written   $   626,522       $   1,507,389           -        $   2,133,911    
Net premiums earned   $   538,152       $   1,413,699           -        $   1,951,851    
Other insurance revenue         8,696             -              -            8,696    
Net loss and loss adjustment expenses       (395,718 )         (898,703 )         (2,940 )         (1,297,361 )  
Commissions and other acquisition expenses       (139,895 )         (447,604 )         (2 )         (587,501 )  
General and administrative expenses       (26,717 )         (2,308 )          -            (29,025 )  
Underwriting income (loss)     $   (15,482 )     $     65,084       $   (2,942 )     $     46,660    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                               111,802    
Interest and amortization expenses                                 (21,314 )  
Accelerated amortization of senior note issuance cost                                 (2,345 )  
Amortization of intangible assets                                 (1,846 )  
Foreign exchange and other gains                                 6,474    
Other general and administrative expenses                                 (20,713 )  
Income tax expense                                 (1,206 )  
Net income                           $     117,512    
                                 
Net loss and loss adjustment expense ratio (8)       72.4 %         63.5 %                 66.2 %  
Commission and other acquisition expense ratio (9)       25.6 %         31.7 %                 30.0 %  
General and administrative expense ratio (10)       4.8 %         0.2 %                 2.5 %  
Combined ratio (12)       102.8 %         95.4 %                 98.7 %  
                                 
                                 
For the Nine Months Ended September 30, 2015   Diversified Reinsurance     AmTrust Reinsurance     Other     Total  
Gross premiums written   $   631,294       $   1,505,642       $   (1 )     $   2,136,935    
Net premiums written   $   602,693       $   1,423,060       $     1       $    2,025,754    
Net premiums earned   $   570,694       $   1,274,563       $   2       $   1,845,259    
Other insurance revenue         9,408             -              -            9,408    
Net loss and loss adjustment expenses       (417,846 )         (811,016 )         (7,643 )         (1,236,505 )  
Commissions and other acquisition expenses       (152,332 )         (399,291 )         (55 )         (551,678 )  
General and administrative expenses       (25,976 )         (2,200 )           -            (28,176 )  
Underwriting income (loss)     $   (16,052 )     $   62,056       $   (7,696 )     $   38,308    
                                 
Reconciliation to net income                                
Net investment income and realized gains on investment                                 98,587    
Net impairment losses recognized in earnings                                 (1,060 )  
Interest and amortization expenses                                 (21,796 )  
Amortization of intangible assets                                 (2,130 )  
Foreign exchange and other gains                                 4,062    
Other general and administrative expenses                                 (20,775 )  
Income tax expense                                 (1,636 )  
Net income                           $     93,560    
                                 
Net loss and loss adjustment expense ratio (8)       72.0 %         63.6 %                 66.7 %  
Commission and other acquisition expense ratio (9)       26.3 %         31.3 %                 29.7 %  
General and administrative expense ratio (10)       4.5 %         0.2 %                 2.7 %  
Combined ratio (12)       102.8 %         95.1 %                 99.1 %  
                                 
                                 
(8) Calculated by dividing net loss and loss adjustment expenses by the sum of net premiums earned and other insurance revenue.   
           
(9) Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.   
       
(10) Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.   
           
(11) Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.   
         
(12) Calculated by adding together the net loss and loss adjustment expense ratio and expense ratio.   

CONTACT:Noah Fields, Senior Vice President, Investor RelationsMaiden Holdings, Ltd.Phone: 441.298.4927E-mail: nfields@maiden.bm

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